Heat Pump Pros and Cons for Landlords: An Honest Table

The short answer

A heat pump has real advantages for a landlord, and real disadvantages, and which side wins depends mostly on what it replaces. Against direct electric heating the running cost case is strong. Against mains gas, bills barely move, so the case rests on the grant, the planned EPC C rule and the property’s long term standing.

This page sets out both sides in one table. For the overall verdict by property type, read is a heat pump worth it for landlords; this page does not repeat it.

The two-sided table

Factor	The pro	The con
Running cost vs gas	Can match or beat a gas boiler if well designed	Electricity is 26.32p per kWh against gas at 7.97p (Ofgem cap, 1 October to 31 December 2026), so it needs a SCOP of about 2.97 just to break even
Running cost vs direct electric	Roughly a third of the electricity for the same heat at SCOP 3.0	None on unit cost; the cost is the install
Tenant bills	May fall slightly with a good design	May rise if the system runs below the break-even SCOP
Grant	£7,500 Boiler Upgrade Scheme grant for air or ground source; landlords can apply through the installer	One grant per property; hybrids are not funded; must replace fossil fuel or electric heating
Install cost	The grant takes a large share off	Around £12,000 before grant for an air source heat pump (Energy Saving Trust, page updated 23 September 2026)
EPC	A lower carbon heating system ahead of the planned EPC C rule	A gain on today’s cost based EPC is not guaranteed
Space	MCS says most properties have enough space for an outdoor unit	Needs outdoor space and, for a wet system, room for a hot water cylinder
Noise and planning	Permitted development in England for most houses	37.0 dB(A) noise limit; one unit on a house that is not detached; conservation area and listed building limits
Disruption	Planned work can be timed between tenancies	Radiators may need replacing; a sitting tenant lives through it
Gas safety	If no gas appliance remains, the annual gas safety check duty ends	If any gas appliance stays, the duty stays too
Lifespan	MCS says up to 20 years on average	Needs a yearly professional check

Running cost: the con most landlords underestimate

The price gap is the core problem. One kWh of electricity costs about three and a third times one kWh of gas at the current cap. A gas boiler at 90% efficiency delivers heat at about 8.86p per kWh (7.97p divided by 0.9). A heat pump delivers heat at 26.32p divided by its SCOP. The two are equal at a SCOP of about 2.97.

Real systems often sit near that line. In the Electrification of Heat demonstration project, run for the government and analysed by Energy Systems Catapult, the median measured seasonal performance of 428 air source heat pumps was 2.93. For how SCOP works and what to ask for, see COP and SCOP explained.

Worked example (modelled, not a real project)

Inputs: a three bedroom semi needing 12,000kWh of heat a year (the illustrative figure used across this site), a gas boiler at 90%, Ofgem cap unit rates for 1 October to 31 December 2026. Standing charges are left out. Figures are rounded.

Heating	Yearly energy cost
Gas boiler, 90%	£1,063
Heat pump, SCOP 2.93 (measured median above)	£1,078
Heat pump, SCOP 3.0	£1,053
Heat pump, SCOP 3.5	£902
Direct electric heaters	£3,158

Against gas, the range runs from about £15 a year more in running costs to about £160 a year less. Against direct electric heating, a heat pump at SCOP 3.0 saves about £2,105 a year on the same heat. That is the single biggest pro on this page, and it applies only to homes heated by electricity now.

The grant: a pro with conditions

The Boiler Upgrade Scheme pays £7,500 towards an air to water or ground source heat pump, or £9,000 where oil or LPG is replaced in a home with no mains gas connection, from 21 July 2026 to 31 March 2027. GOV.UK confirms landlords can apply, since the owner must own the property “including a property you rent out to tenants”. The installer must be MCS certified and applies on the owner’s behalf.

The conditions are the con: one grant per property, no hybrid systems, no funding where the home already had government money for a heat pump or biomass boiler, and social housing is excluded. Full detail is on the Boiler Upgrade Scheme for landlords page.

EPC effect: likely helpful, not guaranteed

Today’s law is a minimum EPC E. The planned rule, set out in the government response of 21 January 2026, is EPC C by 1 October 2030, with a fabric standard first and then a choice of a heating system standard or a smart readiness standard. The regulations have not yet been laid.

A heat pump fits the heating route in principle, but today’s EPC is cost based, and higher electricity prices can limit the gain. See do heat pumps improve EPC ratings before assuming a band change.

Space, noise and disruption

These are practical cons, and they decide many rentals before cost does.

• Space outside. Under permitted development in England, a house that is not detached can have one unit, a detached house two, and the compressor must be no more than 1.5 cubic metres on a house or 0.6 cubic metres on a block of flats. No unit on a pitched roof.
• Space inside. A wet system usually needs a hot water cylinder. Where there is no room, an air to air system is one alternative, with its own trade offs.
• Noise. The unit must meet 37.0 dB(A) at the neighbour’s nearest habitable room, using the MCS 020 a calculation, or it needs planning permission.
• Disruption. Radiators sized for a hot gas boiler may be too small at a heat pump’s lower water temperature. Replacing them means access to every room, so agree dates with the tenant early.

The full list of checks is on before you install a heat pump in a rental.

Lifespan and servicing

MCS says an air source heat pump lasts, on average, up to 20 years, and that regular maintenance is essential, with a yearly professional check. For a landlord that is a plannable cost, like a boiler service, and it should be written into the handover for the tenant.

If the heat pump removes every gas appliance from the property, the annual landlord gas safety check no longer applies. If a gas hob or fire stays, it does. See the gas safety certificate page.

When the cons win

• The home leaks heat and the fabric has not been improved. Insulation first is often the right answer.
• There is no realistic place for the outdoor unit or the cylinder.
• The property is on mains gas, the boiler works, and the tenant would pay more at the likely SCOP.
• The home is listed or in a conservation area and the planning route is unclear.
• You plan to sell within a few years and would not see the benefit.

Next step

Test your own property’s numbers in the heat pump landlord calculator. If you want quotes, send an enquiry through the quote page and relevant independent firms contact you, with no charge to you and no obligation.

Figures were read from the sources listed on 8 October 2026. This is general information, not financial advice.